Production risks, risk preference and contract farming: Impact on food security in India

This article reviews the literature on contract farming (CF) in India and assesses the impact of smallholders’ perceived production risks on the adoption of CF; the impact of CF on smallholders’ food security; and its impact on employment generation in their farming enterprises. We also show the imp...

Descripción completa

Detalles Bibliográficos
Autores principales: Mishra, Ashok K., Kumar, Anjani, Joshi, Pramod Kumar, D'Souza, Alwin
Formato: Journal Article
Lenguaje:Inglés
Publicado: Oxford University Press 2018
Materias:
Acceso en línea:https://hdl.handle.net/10568/145609
_version_ 1855530117490540544
author Mishra, Ashok K.
Kumar, Anjani
Joshi, Pramod Kumar
D'Souza, Alwin
author_browse D'Souza, Alwin
Joshi, Pramod Kumar
Kumar, Anjani
Mishra, Ashok K.
author_facet Mishra, Ashok K.
Kumar, Anjani
Joshi, Pramod Kumar
D'Souza, Alwin
author_sort Mishra, Ashok K.
collection Repository of Agricultural Research Outputs (CGSpace)
description This article reviews the literature on contract farming (CF) in India and assesses the impact of smallholders’ perceived production risks on the adoption of CF; the impact of CF on smallholders’ food security; and its impact on employment generation in their farming enterprises. We also show the impact of the outcome variables by risk preference of smallholders. Using farm‐level data and endogenous switching regression methods, this study presents three key findings. First, the perception of weather and pest risk, access to irrigation facilities, extension visits, and access to institutional credit are the main drivers of CF adoption. Second, CF adoption increases food security and varies with the revealed risk preference of smallholders, and risk‐seeking smallholders tend to gain higher food security. Third, regardless of revealed risk preferences, smallholders who did not adopt CF benefit from adoption by reducing their labor requirements, with no significant losses in yield.
format Journal Article
id CGSpace145609
institution CGIAR Consortium
language Inglés
publishDate 2018
publishDateRange 2018
publishDateSort 2018
publisher Oxford University Press
publisherStr Oxford University Press
record_format dspace
spelling CGSpace1456092024-10-25T07:59:11Z Production risks, risk preference and contract farming: Impact on food security in India Mishra, Ashok K. Kumar, Anjani Joshi, Pramod Kumar D'Souza, Alwin agricultural sector capacity development dietary transition crop production smallholders food security contract farming risk diversification This article reviews the literature on contract farming (CF) in India and assesses the impact of smallholders’ perceived production risks on the adoption of CF; the impact of CF on smallholders’ food security; and its impact on employment generation in their farming enterprises. We also show the impact of the outcome variables by risk preference of smallholders. Using farm‐level data and endogenous switching regression methods, this study presents three key findings. First, the perception of weather and pest risk, access to irrigation facilities, extension visits, and access to institutional credit are the main drivers of CF adoption. Second, CF adoption increases food security and varies with the revealed risk preference of smallholders, and risk‐seeking smallholders tend to gain higher food security. Third, regardless of revealed risk preferences, smallholders who did not adopt CF benefit from adoption by reducing their labor requirements, with no significant losses in yield. 2018-09-26 2024-06-21T09:04:44Z 2024-06-21T09:04:44Z Journal Article https://hdl.handle.net/10568/145609 en Limited Access Oxford University Press Mishra, Ashok K.; Kumar, Anjani; Joshi, Pramod Kumar; and D'Souza, Alwin. 2018. Production risks, risk preference and contract farming: Impact on food security in India. Applied Economic Perspectives and Policy 40(3): 353–378. https://doi.org/10.1093/aepp/ppy017
spellingShingle agricultural sector
capacity development
dietary transition
crop production
smallholders
food security
contract farming
risk
diversification
Mishra, Ashok K.
Kumar, Anjani
Joshi, Pramod Kumar
D'Souza, Alwin
Production risks, risk preference and contract farming: Impact on food security in India
title Production risks, risk preference and contract farming: Impact on food security in India
title_full Production risks, risk preference and contract farming: Impact on food security in India
title_fullStr Production risks, risk preference and contract farming: Impact on food security in India
title_full_unstemmed Production risks, risk preference and contract farming: Impact on food security in India
title_short Production risks, risk preference and contract farming: Impact on food security in India
title_sort production risks risk preference and contract farming impact on food security in india
topic agricultural sector
capacity development
dietary transition
crop production
smallholders
food security
contract farming
risk
diversification
url https://hdl.handle.net/10568/145609
work_keys_str_mv AT mishraashokk productionrisksriskpreferenceandcontractfarmingimpactonfoodsecurityinindia
AT kumaranjani productionrisksriskpreferenceandcontractfarmingimpactonfoodsecurityinindia
AT joshipramodkumar productionrisksriskpreferenceandcontractfarmingimpactonfoodsecurityinindia
AT dsouzaalwin productionrisksriskpreferenceandcontractfarmingimpactonfoodsecurityinindia